National Agricultural bank for Rural Development NABARD provides Loans for Food Parks and Food Proce...........

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National Agricultural bank for Rural Development (NABARD) provides

Loans for Food Parks and Food Processing Units in Designated Food Parks
Credit Facilities to Marketing Federations
Direct Refinance Assistance to Co-operative Banks
Long term irrigation Fund
Short Term re-financing for seasonal agricultural operations

Select the correct answer using the codes below.

1, 3 and 4 only

2 and 5 only

1, 2, 3 and 4 only

1, 2, 3, 4 and 5

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Explanation:

Statement 1: Development of food processing industry in the country is accorded top priority by the Government of India as it is one of the most critical links in the agri value chain. Taking this agenda further, the Finance Ministry, in 2014, announced setting up of a Special Fund of Rs. 2,000 crore in NABARD for providing direct term loans at affordable rates of interest to Designated Food Parks (DFPs) and food processing units in the DFPs.

Statement 2: Marketing federations and cooperatives are playing a very important role in agribusiness and value/supply chain management of the various agricultural commodities. Major activities undertaken by these institutions are:

Procurement of agricultural commodities including milk
Aggregation, storage and value addition in few select commodities like milk etc.
Marketing

Large number of farmers, producers’ organizations, and primary societies depend upon these institutions for marketing of their produce and for value-added services like input supply, value addition and storage facilities. The marketing operations by these federations and cooperatives require seasonal and timely short-term credit facility to support their day-to-day operations.

Statement 3: Implementation of the Government of India’s Revival Package of Short Term Co- operative Credit Structure (STCCS) as per Vaidyanathan Committee recommendations enabled District Central Co-operative Banks (DCCBs) to borrow funds directly from any financial institution regulated/approved by RBI. As a corollary to this enabling provision, NABARD developed a progressive product titled ‘Short Term Multipurpose Credit Product’ (STMPCP) to provide financial assistance to Co-operative Banks (StCBs/DCCBs). The primary objective here was to expand their lendable resources and enable their diversification into a variety of business operations.

Statement 5: Refinancing is the replacement of an existing debt obligation with another debt obligation under different terms. In agricultural terms, it is often given when a farmer is unable to pay his existing loans, and he opts for a refinance from NABARD.